Rental Property Management Marketability vs Livability

Rental Property Management isn’t just about finding a tenant by applying your mastery of Marketability skills as a property manager or as a seasoned, experienced landlord.

The long game is about Livability.

Marketability convinces potential tenants to consider your rental – Livability convinces the very best, top tier tenants to move there – and to stay. Think path of least resistance. “Why move if all your needs are being met?”.

Marketability is an important skill for a rental owner to have and my property management company is built on our ability to present a rental properties better than our competition, or then a property owner can do for themselves.

There are a great many things we do to make a property more appealing to prospective tenants as we prep its marketing launch.

But the real money is with the properties we manage that are highly livable.

Not only do highly-livable properties rent for far more, rent far quicker, to better quality tenants and are vacant far less; but there is a noticeable tenant mindset shift.

The reason is multifold. – Happy tenants do make for happy property managers and happy rental property owners; but also a cared for property – one where the owner not only maintains its condition; but also has given deep thought on the livability of the space, establishes to the tenant just who is sitting across the table from them.

Livability removes the us/them view. It places the property owner or the manager and the tenant as partners. It shows quality of ownership, that character resonates in every interaction going forward.

Installing hooks, behind doors, isn’t always marketable; but it makes the property more livable. In the case of a pedestal bathroom sink we need to find  balance as it is more marketable, than a bulky cupboard; but can be less livable because the tenant loses storage space.

Examples of improvements that make a property more Livable; but might not be considered Marketable:

  • Dimmer Switches. Lighting absolutely makes a property more livable and pleasant. A dimmer switch could be the difference between a tenant moving on at lease end or staying another term.
  • Hooks. A place to hang a robe in a bathroom, coats at the front door or clothes in a bedroom helps a tenant manage a property much better and can stop them from overgrowing it.
  • Cupboard Space, Shelving, Storage. These are all things a potential tenant may, or may not be considering when considering your rental property; but an existing tenant certainly will.

Here is the transcript of the video. Please post comments and questions below.

00:00 hi everybody this is Joe White just as 00:02 the grow real estate investing podcast 00:04 I’m here at one of properties a duplex 00:06 that my partner’s class wife and I own 00:08 and is storing – pandemic and so I can 00:12 really having trouble getting 00:13 contractors to do some work so Matic 00:15 show you having to get my hands dirty 00:16 and I’m in the middle of actually 00:18 installing this cupboard up here and I 00:20 think it’s a good time for to talk about 00:22 marketability versa livability and so the 00:26 reason why we decided to put this 00:28 cupboard in here is not because I think 00:29 a potential tenants gonna come in here 00:31 and see this little tiny cupboard and 00:33 think “oh there’s an extra little 00:35 cupboard there how nice I think I might 00:36 want to rent this property” but it’s a 00:39 small one-bedroom we don’t really have 00:41 huge cause of space we really don’t have 00:42 a lot of functional space from the 00:44 tenant so I think this will make it a 00:46 more functional space more livable I 00:50 think in a long run that will actually 00:52 benefit us and not only does it make us 00:53 feel a little bit better you know 00:56 relative to the tenant but also I think 00:58 a tenant might tend to take a little bit 01:00 better care of the property because 01:01 we’re kind of taking a little bit better 01:02 care of their needs and I think they 01:04 might stay a little bit longer same 01:06 thing with this microwave that I’m gonna 01:08 actually install so long run this 01:10 microwaves this can it be another thing 01:12 I have to fix and my wife and I are 01:15 gonna have to fix for the tenant when it 01:16 breaks and I don’t know if a tenant and 01:19 we’re gonna actually install this so you 01:21 have to ignore my electrical work here 01:22 I’m actually gonna be cooking this up 01:23 live a little while because I’m not 01:25 really a professional no just go ahead 01:27 and go for it so I won’t have you guys 01:29 in for this so I don’t know if intents 01:31 gonna come in here and take a look at 01:32 this microwave and and say wow that’s a 01:34 nice microwave I think I want to rent 01:36 this but I think it makes it more 01:37 livable because again it’s a very small 01:39 space and you really don’t have counter 01:41 space to really put in microwave so I 01:43 think this would be a smart solution and 01:46 same thing with this washer and dryer 01:48 that I installed the last week we wanted 01:50 to give the tenants a washer and dryer 01:52 I think that’s marketable I think 01:53 someone’s gonna see the ads he it has a 01:55 washer and dryer they’re gonna be much 01:57 more apt to rent it but the problem is 01:59 is we end up losing some of the 02:01 livability because we had an open floor 02:04 design and it was kind of a nice unit 02:07 and then I ended up having to build this 02:09 monstrosity right in the mid 02:11 you know I tried to do what I could to 02:12 make a little bit nicer by making it a 02:14 sit up bar and put this bar place in 02:17 here which I think actually is pretty 02:19 marketable it’s a nice little electric 02:21 fireplace and I think the tenants 02:23 sitting in the living room they’ll 02:24 actually kind of appreciate this 02:26 so that would be marketable the island I 02:28 don’t really feel is that marketable but 02:31 it makes it more livable same thing with 02:33 this air conditioner unit it’s more than 02:36 enough to cool down this entire unit I 02:39 don’t know if a tenant is going to come 02:40 in here and see this air conditioning 02:42 unit up in the window and appreciate it 02:44 for what it is but I think being a 02:46 ground floor unit – I feel a little more 02:48 comfortable having it there than forcing 02:50 a tenant to say put a window unit in 02:53 some of these windows here it would be a 02:55 little bit of a safety issue again it 02:58 makes more livable I don’t think it 03:00 makes it more marketable 03:01 I don’t think attendants can come in 03:02 here and say oh I don’t know if I want 03:04 to rent this because I have to put a 03:05 window unit here I don’t think they’re 03:07 gonna appreciate that we put a thousand 03:09 dollar unit in there now this is the 03:11 same thing with these hooks so that’s a 03:14 brushed nickel hook I don’t know if you 03:15 can see I think a tenants gonna come in 03:17 here and it kind of goes with the 03:18 brushed nickel theme throughout the 03:19 property I think that is marketable I 03:21 think it also makes it more livable 03:23 however we’re going to install we’re in 03:25 the bedroom now I’m gonna install a hook
03:27 in the back to this bedroom door I don’t 03:29 think a tenant is gonna come in here and 03:30ever see that we actually put a multi 03:32 hook on the back of this door it’ll make 03:35 them have any more livable a little more 03:37 functional for them I think it’s 03:39 something that that’s required I don’t 03:42 know if we’ll ever necessarily get our 03:44 money back correctly but I think we will 03:46 eventually when a tenant can actually 03:48 live here a little bit longer yes that 03:50 is kind of some of these little things 03:51 so again just want to talk real quickly 03:55 about the funk difference between 03:56 marketability and livability

03:58 and as usual happy investing!

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Author:

Joe White

Joe White is a Philadelphia Property Manager and Real Estate Broker. He is the owner of Grow Property Management and has been involved in the management, sales and purchases of Philadelphia area rental investment properties since 2008. He is an author and works as a real estate investment consultant and construction manager.

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